Price Failed to break above the bull channel and traded back into it having a deep sell off (Daily Time frame). Price retraced from 1.30280 till the breakout and test it (1.3350)
Right now the market closed with a nice bull Bar,if the next daily candle has a bull close the odds are with might see higher price but if it has a bear close the attempt from the Bull to breakout to the upside may fail and lower price may follow.
From 1.3350 market traded to the downside but with lack of momentum (in a bear channel 1h Time frame) this it means there are Bulls who are scaling-in with longs,usually bear channel in 70% of the times evolve in bull flag and 30% of the time break to the downside,having said that,at the moment we are right in the middle of the Daily Channel coming from a strong sell-off,usually when a strong sell-off happens,Bulls are trapped and would use any high price (1.3350) to go out from their loose position with small loss and a second leg usually unfold. The depth of the second sell-off may result with a double bottom,a higher-high or higher low.
A nice confluence of the price 1.2880/1.30 (underlined with green rectangle) is right to the bull channel trend line and it could be a magnet for the price to test it again.
This analysis is based on Daily TF,it this happen it may take 5 to 8 days. Trade safe :-) Thank you.
Right now the market closed with a nice bull Bar,if the next daily candle has a bull close the odds are with might see higher price but if it has a bear close the attempt from the Bull to breakout to the upside may fail and lower price may follow.
From 1.3350 market traded to the downside but with lack of momentum (in a bear channel 1h Time frame) this it means there are Bulls who are scaling-in with longs,usually bear channel in 70% of the times evolve in bull flag and 30% of the time break to the downside,having said that,at the moment we are right in the middle of the Daily Channel coming from a strong sell-off,usually when a strong sell-off happens,Bulls are trapped and would use any high price (1.3350) to go out from their loose position with small loss and a second leg usually unfold. The depth of the second sell-off may result with a double bottom,a higher-high or higher low.
A nice confluence of the price 1.2880/1.30 (underlined with green rectangle) is right to the bull channel trend line and it could be a magnet for the price to test it again.
This analysis is based on Daily TF,it this happen it may take 5 to 8 days. Trade safe :-) Thank you.